An economy is in equilibrium. From the following data about an economy calculate autonomous consumption.
- Income = 5000
- Marginal propensity to save = 0.2
- Investment expenditure = 800
CBSE DELHI - SET 1 2017
Download our app for free and get started
$\text{Y}=\overline{\text{C}}+\text{MPC}\left({\text{Y}}\right)+\text{I}$$5000=\overline{\text{C}}+\left(1-0.2\right)\left(5000\right)+800$
$\overline{\text{C}}=5000 - 4000 - 800$
$=200$
$\overline{\text{C}}=5000 - 4000 - 800$
$=200$
Download our appand get started for free
Experience the future of education. Simply download our apps or reach out to us for more information. Let's shape the future of learning together!No signup needed.*
Similar Questions
- 1View SolutionExplain two sources each of demand and supply of foreign exchange.
- 2View SolutionWhat is meant by inflationary gap? State three measures to reduce this gap.
- 3Explain why $G – T = (Sg – I) – (X – M).$View Solution
- 4View SolutionWould the central bank need to intervene in a managed floating system? Explain why.
- 5View SolutionExplain the meaning and two merits of fixed foreign exchange rate.
- 6View SolutionDistinguish between balance of trade and balance of payment.
- 7View Solution"India is taking huge leaps in the index of Ease of Doing Business, as a result many MNCs are shifting their production base to India." In the light of the above statement, comment upon the flow of foreign exchange and its likely impact on the Indian Economy.
- 8View SolutionDistinguish between current account and capital account of balance of payments accounts. Is import of machinery recorded in the capital account. Give reasons for your answer.
- 9Suppose it takes $1.25$ yen to buy a rupee, and the price level in Japan is $3$ and the price level in India is $1.2$. Calculate the real exchange rate between India and Japan $($the price of Japanese goods in terms of Indian goods$). ($Hint: First find out the nominal exchange rate as a price of yen in rupees$).$View Solution
- 10View SolutionThe following figures are based on the balance of payments accounts:
Calculate Balance of Trade.S.No.(₹ in crores)1.Imports of goods.4002.Export of goods.3403.Shipping.34.Travel Tourism, etc.55.Interest, dividends, profits.506.Unilateral Transfers.40